ERE expands compensation for energy suppliers/ Also includes costs from negative imbalances caused by network interruptions
The Energy Regulatory Authority has approved changes to the regulation on service quality standards in the distribution network, expanding the compensation mechanism for electricity suppliers operating in the liberalized market.
The main change relates to the treatment of market imbalances. Until now, the regulation provided for compensation only for positive imbalances, while the new decision also includes negative imbalances, which can be created as a result of unplanned interruptions in the distribution network.
According to the ERE, energy suppliers face costs from both positive and negative imbalances in the balancing market. In cases where an energy producer fails to supply the contracted energy due to network problems, the supplier is left without the necessary quantity for its customers and is forced to cover the difference in the balancing market, exposing itself to additional costs. For this reason, the ERE assessed that the existing mechanism was incomplete and accepted the proposal of the Albanian Association of Electricity Suppliers to expand the compensation scheme.
The decision provides that in cases of unplanned outages, except in cases of force majeure, the Distribution System Operator shall compensate suppliers not only for the undistributed energy that creates positive imbalances, but also for the costs associated with negative imbalances.
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